Lendbuzz Secures $150M Credit Facility to Expand Number of Auto Loans

Auto finance platform Lendbuzz has secured a $150 million credit facility from J.P. Morgan and will use it to help expand the number of borrowers it serves.

This is the second credit facility the investment bank has extended to the FinTech, with the first being done in January, Lendbuzz said Tuesday (Nov. 1) in a press release.

“We are delighted with the confidence J.P. Morgan has shown in Lendbuzz by entering into this facility,” Lendbuzz CEO Amitay Kalmar said in the release. “This relationship is an important part of our growth strategy, expanding our capacity and ability to originate loans that unlock the power of financial opportunity for a growing number of consumers and dealerships.”

The Lendbuzz platform is powered by artificial intelligence (AI) and machine learning (ML) and enables the company to assess the creditworthiness of consumers with little or no credit history, according to the press release.

Lendbuzz said it is currently growing its number of auto loan originations by over 100% year over year, enabling finance solutions for consumers and offering a more diversified customer base to the automotive dealerships.

PYMNTS research has found that almost two-thirds of consumers want to improve their credit scores but do not know how to do so.

Read more: One-Third Of Consumers Think Their Credit Is Better Than It Is

Consumers believe a good credit score and an established credit history are essential to getting loans and credit cards, and they want help in understanding how to better manage and improve their scores, according to the “Credit Score Literacy And Building Credit Report,” a collaboration between PYMNTS and Elan (a division of U.S. Bank).